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Do you have a p/x? If so, they usually pull a valuation from wbac or autotrader. Do the same with their car. If they valuate your car using that benchmark, they must valuate theirs in the same way. After all, it’s not what the car owes them, but the value it has. Pay that price + £500, more than enough in these times...
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Why would they do that? Do Tesco sell you their veg for the price it is pulled out of the ground at?
And values keep going up, every single month, and will probably get worse and worse once lockdown comes off and demand is unleashed with no supply.
You couldn't be more wrong about the current car value/demand situation.
Edited by pd on 11/02/2021 at 12:24
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that's not what I said. people like you keep propagating the thought that there is an umlimited supply of money and demand and that covid/brexit hasn't done anything in terms of curbing that. as I said, we're not in the middle of it, but 2008 will pale in comparisson with what's yet to come.
but that's not the point. all I'm saying is that if a dealer uses a valuation for a part-exchange, I would want them to use the same valuation for pricing. example:
I want to p/x my car which they value at £15000, even though I still have £18000 finance left on it.
they have a car that according to the valuation sells at £20000 (dealer), but they want £25000 for it. if my car gets devalued like that, then what logic is there in keeping their price artificially high? based on what?
it's not what you paid for it or what you THINK it should bring in, it's the market value.
also, the vegetable market is different than the car sales market :).
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It's nonsense to expect the dealer to value the selling price of a car the same as its part-exchange valuation, well nonsense in the real world anyway.
The selling price and buying price of cars, like many things, are different - dealers have margins, they have costs and need to make a profit otherwise there's no point them being in business - in addition, supply/demand affects both buying and selling prices, not necessarily in the same way.
With a part-exchange, the only thing that matters is the "cost to change" - the customer tries to get that as low as possible while the dealer tries to get that as high as possible - that's where the negotiation is.
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If they are asking £25000 for a car which apparently has a value of £20000 why are you wasting their time and yours looking at it? Go and buy one from elsewhere for £20000. If that is the market value there will be ones available.
As for the px the difference, of course, is that the car they are selling they bought in because they actually wanted it. Unless it happens to fit their profile of make, model, price, mileage, colour and they are looking to increase stock they don't want your car. They are valuing it as part of the deal to sell you the other but they'd really prefer not to have to buy it all.
Like the purchase if you believe the car you are selling is worth more then go sell it elsewhere for that. #
Guides are guides. No one is forced to buy or sell at them - the dealer or the customer.
As for values, the new market and new market are not the same. A poor new market means a restricted supply of used. Bizarrely in a recession demand for used cars goes up (because people wish to spend less) and supply goes down (because people are not buying new ones and getting out of their current car).
If you are sure used values are going to plummet I'd just wait until they do.
Edited by pd on 11/02/2021 at 13:52
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Just re-reading the thread start:
"I have see a few cars at main dealers, but they are charging about £2k to £4k then similar cars elsewhere (yes theirs are lower mileage)."
OK. So (a) they are not similar because they have more mileage. (b) If they are the same/similar then just go and buy the ones £4k less.
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Buy private. Autotrader will give you a good idea what the current asking prices are and then look at cars a year older to see how much money you could loose Cars have gone stupid prices in my opinion. A 5 year old Audi A1 is retail almost the same price as it was new. Price in Dealership, brand new now some £28kplus, almost double in 5 years! The new model has a new dash probably cheaper than the old one and the rest looks the same apart from a few style tweaks. All the major stuff is exactly the same. Finance seems to be the only thing holding the car industry together. People are coming out of 3 year deals £3k or more still in debt to finance their next car. You will not win with dealers, they are big players in the industry and even car auctions and other big buyers are no longer as they seem often owned by the car retailers
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Ok, I’ll try again as you clearly didn’t understand what I said. Imagine 2 cars, one mine (the p/x) and one that belongs to the dealer (up for sale). The dealer requests a valuation for my car, which gives him 4 values: trade-in value low, trade-in value high, sell value private and sell value dealer. Of course when you p/x your car, let’s assume it’s in good shape, the dealer will give you the trade-in high value, he adds his profit and sells on, that’s all fair.
What I’m saying is that if the valuation of his car returns a sell value (forecourt) that’s £20000, yet the dealer wants £25000, something’s not ok. The selling value in that valuation already includes some profit and is usually thousands over trade-in. No one said the dealer should sell at trade-in price, so not sure what you’re on about.
If a valuation is used to establish the trade-in value of a car, it must also work the other way around. You can’t offer someone £X for his car saying that’s what the valuation says, but then “valuate” what you sell based on the alignment of the planets last year September.
Edited by chris87 on 11/02/2021 at 15:29
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Used car demand is still high, especially for anything non diesel.
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Ok, I’ll try again as you clearly didn’t understand what I said. Imagine 2 cars, one mine (the p/x) and one that belongs to the dealer (up for sale). The dealer requests a valuation for my car, which gives him 4 values: trade-in value low, trade-in value high, sell value private and sell value dealer. Of course when you p/x your car, let’s assume it’s in good shape, the dealer will give you the trade-in high value, he adds his profit and sells on, that’s all fair. What I’m saying is that if the valuation of his car returns a sell value (forecourt) that’s £20000, yet the dealer wants £25000, something’s not ok. The selling value in that valuation already includes some profit and is usually thousands over trade-in. No one said the dealer should sell at trade-in price, so not sure what you’re on about. If a valuation is used to establish the trade-in value of a car, it must also work the other way around. You can’t offer someone £X for his car saying that’s what the valuation says, but then “valuate” what you sell based on the alignment of the planets last year September.
What's wrong with advertising a car at £25,000 even though the forecourt valuation is £20,000 - it gives the dealer room to give a better px value or room for the customer to negotiate downwards - it's how business works
At the end of the day, if you don't like the deal - buy elsewhere.
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Ok, I’ll try again as you clearly didn’t understand what I said. Imagine 2 cars, one mine (the p/x) and one that belongs to the dealer (up for sale). The dealer requests a valuation for my car, which gives him 4 values: trade-in value low, trade-in value high, sell value private and sell value dealer. Of course when you p/x your car, let’s assume it’s in good shape, the dealer will give you the trade-in high value, he adds his profit and sells on, that’s all fair. What I’m saying is that if the valuation of his car returns a sell value (forecourt) that’s £20000, yet the dealer wants £25000, something’s not ok. The selling value in that valuation already includes some profit and is usually thousands over trade-in. No one said the dealer should sell at trade-in price, so not sure what you’re on about. If a valuation is used to establish the trade-in value of a car, it must also work the other way around. You can’t offer someone £X for his car saying that’s what the valuation says, but then “valuate” what you sell based on the alignment of the planets last year September.
No dealer who actually makes any money relies on trade guides to buy in the cars they sell. They know those cars - they know the market, what options and colours affect value and what they can sell them for. They may well regularly pay way over the guides for them or know they guides are way over. Like everyone else they are liable to pay more for something they want than something they don't.
A px they probably don't know they just have to use the best they can and rely on the guides.
Mainly though it goes back to the fact that they wanted to buy in the car they are selling as stock. They do not want to buy in your px. So they value them differently.
Edited by pd on 11/02/2021 at 16:19
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This is not about whether they want something or not. It’s how you put a price on something. If you bring me a valuation as an argument for a part exchange price, don’t be hypocrite and ignore it when I use the very same source to valuate your vehicle. It’s a car, a piece of metal that will be worth close to nothing in 5 years’ time..
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In this country there are (thankfully) no price controls, we are all free to advertise our goods at whatever price we want to. If said price is more than you are willing to pay then move on and look elsewhere, problem solved. If as you state you owe £18000 on a car worth £15000 and you’re looking at a car worth £20000 that's up for £25000 then I’d suggest just keeping the car you’ve got now. You are not in a position to do a deal and from what you say it’s a bad deal anyway.
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In this country there are (thankfully) no price controls, we are all free to advertise our goods at whatever price we want to. If said price is more than you are willing to pay then move on and look elsewhere, problem solved. If as you state you owe £18000 on a car worth £15000 and you’re looking at a car worth £20000 that's up for £25000 then I’d suggest just keeping the car you’ve got now. You are not in a position to do a deal and from what you say it’s a bad deal anyway.
Surely the point with the car they are selling is they *know* how much it cost. Knowing your stand in value is a pretty fundamental aspect of being a car dealer.
You only use a guide when you are trying to value something. With the sales car they know what it cost, what it cost to prep, how long they have had it, how many enquiries they have had etc.
Therefore they can estimate pretty well what they need to sell it for and how important it is to sell it to you. If they've had it for 2 days less so than 4 months.
And you have the option to walk away and buy a cheaper one if they are asking too much.
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If they valuate your car using that benchmark ...
Do you mean value, or valet, the car ? :-))
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I mean valuate...
www.collinsdictionary.com/dictionary/english/valua...e
:-)
Aaaah, American English... Jibberish. ;-)
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Evaluate is the word we're looking for. For a car 'value' is fine and is probably the word most usually used.
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